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Connection · published Oct. 16, 2026Updated
Capped at 1%, budgets across the state are choosing cuts, saved-up tax room or the ballot

Capped at 1%, budgets across the state are choosing cuts, saved-up tax room or the ballot

Connection 4 · MoneyUpdated Oct. 18
The connection: State law lets most cities and counties grow their property tax collections 1% a year without a vote. Costs are rising faster, so governments from Seattle to Yakima are closing gaps with the same three tools: cut positions, use tax room they left unused in past years (called "banked capacity"), or ask voters to lift the cap. Bellingham's $8M gap is one example of a choice every place below is making this fall at a different size.
  • BellinghamHearing Mon., Oct. 19A proposed 1% levy increase against an $8M general fund gap in 2027.
  • SeattleProposed Sept. 24A $175M general fund gap closed with 1% to 8% department cuts and 128 positions eliminated, all but about 15 of them vacant, and no new taxes, per KNKX.
  • LynnwoodLevy vote Nov. 9A $21.5M gap and 14 layoffs. The budget assumes the council takes its full banked capacity, about $2.2M a year; without it, close to 30 more positions could go.
  • EverettForecast Sept. 24Property tax brings in about 23% of revenue and grows only about $700K in 2027, against a gap near $10M.
  • Whatcom CountyBudget vote in NovemberThe Executive's budget cuts 35 positions, most vacant, and proposes using banked capacity for the Flood Control Zone District, about $3.1M a year per Cascadia Daily News.
  • San Juan CountyAdopted Oct. 5Voters rejected a lid lift in April. The 2027 budget cuts more than $3.8M in staff and programs.
  • YakimaAnnounced Oct. 14After a failed lid lift, $6M in cuts and $4M from reserves close a $9M gap.
  • Lynden and Fire District 1On the Nov. 3 ballotBoth ask voters for a lid lift: Lynden to $1.54 per $1,000, Fire District 1 to $1.48. Fire District 1's August try failed by 124 votes.

Update, Oct. 18: Bellingham's proposed 2027 General Fund shows $130.2M in revenue against $138.2M in spending, a gap of about $8.0M (our subtraction). The City's overview says it would draw reserves while it seeks approval of a regional fire authority. Council reviews the Police, Fire and Municipal Court budgets and holds the revenue hearing Mon., Oct. 19, and adopts in December. Whatcom County's proposal lists deficits of $8.3M in 2027 and $14.3M in 2028 before austerity measures; since May departments have modeled 7% and 10% cuts and held vacancies open at least 30 days (CDN), and Salish Current reports the Sheriff's Office loses 9 positions, 6 of them patrol, which we haven't matched to County records. Everett shows a fourth tool: on Oct. 14 its council voted unanimously to raise its business tax exemption from $20,000 to $250,000 of revenue and change the rates, expected to raise about $3.5M a year from Jan. 1, 2027, with $2.5M to $2.9M a year planned for a proposed downtown stadium. Lynnwood's proposed levy is $11.1M including all its banked capacity, about $128 more a year for the average household (Lynnwood Times).

Built from: RCW 84.55.092, banked capacity · RCW 84.55.050, lid lifts · KNKX, Seattle budget · Everett Herald, Lynnwood budget · Everett Post, Everett forecast · Whatcom County, budget release · CDN, County budget · San Juan Journal · NBC Right Now, Yakima · CDN, Fire District 1 · City, 2027 budget overview · City, budget calendar · Salish Current · Everett Herald, B&O tax · Lynnwood Times

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